2011 Edelman Trust Barometer Findings

Transcription

1 2011 Edelman Trust Barometer Findings

2 Edelman Trust Barometer at a glance Eleventh annual study 5,075 people in 23 countries on five continents Ages 25 to 64 College-educated In top 25% of household income per age group in each country Report significant media consumption and engagement in business news and public policy 2

3 The Edelman Trust Barometer in retrospect Trust is now an essential line of business Business must partner with government to regain trust Young influencers have more trust in business Business more trusted than government and media A person like me emerges as credible spokesperson Trust shifts from authorities to peers U.S. companies in Europe suffer trust discount Earned media more credible than advertising Fall of the celebrity CEO Rising Influence of NGOs 3

4 1. State of Trust Shifting center of gravity

5 Globally, trust increases in all institutions How much do you trust the institution to do what is right? 100% % +4 57% 61% +2 54% 56% % 47% 45% 49% 20% 10% 0% NGOs Business Government Media Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64 5

6 Emerging markets dominate as business trusters U.S. drops to within 5 points of Russia How much do you trust business to do what is right? % 90% % 81% 67% Trusters 64% 59% 62% 61% 57% Neutral % 52% % 48% 54% Distrusters % 46% 44% 42% 41% 20% 10% 0% Brazil India Italy China Japan Germany France US UK Russia Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64; Top 10 GDP countries 6

7 China and Brazil drive rise in trust in government; U.S. now on par with Russia How much do you trust government to do what is right? % 90% % Trusters % Neutral Distrusters 74% 39% 42% 51% 43% 49% 36% 45% 43% 44% 43% 38% 46% % 39% 43% % 20% 10% 0% China Brazil Japan France Italy India UK US Russia Germany Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64; Top 10 GDP countries 7

8 Developed markets more distrustful of media How much do you trust media to do what is right? % 90% +17 Trusters +19 Neutral Distrusters 63% 54% 73% 58% % 45% 45% % 36% 38% 39% 37% 37% 37% 38% 27% 31% 22% 20% 10% 0% China Brazil India Japan France Italy Germany Russia US UK Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64; Top 10 GDP countries 8

9 Trust in NGOs now on par with business in emerging markets More trusted than business in developed markets How much do you trust NGOs to do what is right? How much do you trust business to do what is right? Business NGOs Brazil China U.S. UK/FR/GER 100% 90% 81% 59% 56% 58% 61% 63% 59% 63% 55% 56% 55% 48% 46% 48% 20% 10% 0% Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64 9

10 Trust Barometer Index: U.S. drops while BRICs hold in composite scoring Global Mexico 69 China 62 India 60 US 53 Japan 50 S. Korea 50 Canada 48 Brazil 48 France 44 UK 43 Germany 36 Russia 36 Global 55 Brazil 80 China 73 Mexico 69 India 56 Canada 55 S. Korea 53 Japan 51 France 50 Germany 44 US 42 UK 40 Russia 40 Composite score is an average of a countries trust in business, government, NGOs, and media Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64 10

11 In U.S., 2011 decline mirrors drop Only country to see across-the-board fall Trust in Institutions: Business Government Media NGOs 63% 63% 59% Worldwide Financial Crisis 54% 55% 46% 45% 46% 46% 43% 36% 31% 38% 27% 20% Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64 11

12 Trust in BRIC-based companies rises How much do you trust global companies headquartered in the following countries to do what is right? +15 Brazil HQs Russia HQs India HQs China HQs 100% 90% 86% % % 100% % % % % 28% 27% % 90% % % % 100% 90% % % % % 20% 13% 20% 20% 15% 10% 10% 10% 10% 0% 0% 0% 0% Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64 12

13 Technology firmly on top; automotive rallies. Finance sector at bottom How much do you trust the following industries to do what is right? Trust in Industries Global Technology Automotive Telecommunications Food and beverage Biotech Retail Entertainment Pharmaceuticals Energy Consumer packaged goods OTC personal health care products Brewing and spirits Media Insurance Banks Financial services 69% 68% 66% 65% 65% 63% 63% 62% 59% 57% 57% 54% 52% 51% 81% Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64 13

14 Since financial crisis, banks cannot recoup trust in U.S., while tech stays high worldwide; in two years, auto climbs in the U.S. and China How much do you trust the following industries to do what is right? Technology Banks Automotive 100% 90% % 98% % 93% 78% 73% 73% 69% % 90% % 83% 71% % % 82% % % 48% 53% 32% 25% 20% 16% 10% 0% China India U.S. U.K. China India U.S. U.K. China India U.S. U.K. Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64 14

15 Business and Society Toward shared value

16 What matters for corporate reputation: Quality, transparency, trust, employee welfare most important How important are these factors to corporate reputation? High quality products or services Transparent and honest business practices Company I can trust Treats employees well 69% 65% 65% 63% Communicates frequently Prices fairly Good corporate citizen Innovator 55% 55% 51% 46% Widely admired leadership Financial returns to investors 39% 39% Responses 8-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64 16

17 Expectations high for business to invest in society Corporations should create shareholder value in a way that aligns with society s interests, even if that means sacrificing shareholder value Government should regulate corporations activities to ensure business behaves responsibly 100% 90% 91% 89% 89% 89% 85% 85% 85% 82% 82% 82% 81% 81% 79% 78% 78% 74% 73% 72% 74% 71% 71% 66% 69% 73% 67% 62% 61% 63% 61% 63% 56% 57% 53% 49% 48% 67% 63% 62% 53% 44% 42% 58% 55% 20% 10% 0% Informed publics ages 25 to 64 17

18 Roadmap to Trust A new way forward

19 CEOs lead rise in trust in authority, but person like me drops amid flight to credentialed spokespeople If you heard information about a company from one of these people, how credible would that information be? Academic/expert 62% An academic or expert Financial/industry analyst 49% Technical expert within the company 64% A financial or industry analyst 53% Person like yourself 47% CEO NGO representative 41% NGO representative 47% Regular employee 32% Government official 43% CEO 31% Person like yourself 43% Government official 29% Regular employee 34% Responses Extremely credible and very credible ; Informed publics ages 25 to 64 19

20 Search engines go-to source; online news second Where do you generally go first for news about a company? Then where do you go? First Source Second Source Online search engine 29% Online news sources 23% Online news sources 19% Print (newspapers/magazines) 17% Print (newspapers/magazines) 15% Online search engine 16% Broadcast (radio/tv) 12% Broadcast (radio/tv) 14% Company website 11% Company website 11% Friends and family 7% Friends and family 10% Social media 5% Social media 7% 0% 10% 20% 0% 10% 20% Informed publics ages 25 to 64 20

21 Repetition enhances believability How many times in general do you need to hear something about a specific company to believe that information is likely to be true? Don t Ten or more know, 2% times (10+), 6% Once (1), 4% Six to Nine times (6-9), 8% Twice (2), 22% Four or Five times (4-5), 26% 3-5 times 59% Three times (3), 33% Informed publics ages 25 to 64 21

22 Trust protects reputation When a company is distrusted When a company is trusted 57% will believe negative information after hearing it 1-2 times will believe positive information after 15% 25% hearing it 1-2 times 51% will believe positive information after hearing it 1-2 times will believe negative information after hearing it 1-2 times Informed publics ages 25 to 64 22

23 Conclusions Business must align profit and purpose for social benefit Current media landscape plus increased skepticism requires multiple voices and channels Demand for authority and accountability set new expectations for corporate leadership Trust is a protective agent and leads to tangible benefits; lack of trust is barrier to change 23

24 Protect the Brand The Transformation of Trust Old Trust Framework New Trust Architecture Control Information Stand Alone WHAT Focus Solely on Profit Profit With Purpose 24

25 For more information, or to request the global or a country-specific presentation, please contact latraviette.smith@edelman.com